22 February 2018
Visit www.capgemini.com/worldreports

Over a third of German banks not happy with IFRS accounting systems - survey

20 October 2009  |  1647 views  |  0 Source: Fernbach

Research by the St. Gallen University of Applied Sciences shows that the high costs and unsatisfying performance of IFRS solutions are at the core of controlling managers' grievances.

The FHS St. Gallen, University of Applied Sciences, in close collaboration with FERNBACH-Software AG, performed a study in the summer of 2009 on Multi-GAAP Reporting with a special focus on IFRS and BilMoG. The survey was led by Prof. Dr. Wilfried Lux, Head of the Finance and Controlling Competence Centre at the St. Gallen University of Applied Sciences, and examined which accounting standards financial institutions in Germany, Austria and Switzerland use to draw up their balance sheets. The study also analysed what specific requirements and challenges financial controlling managers expect in the next two years in terms of IFRS accounting.

The key finding: More than a third (i.e. 36 percent) of banks in Germany surveyed find that the costs of their current IFRS solutions are too high while 42 percent are not satisfied with the performance of their current programmes in generating IFRS-compliant accounting entries. Then most heavily criticised systems are the ones that deal with capturing hedges and structured products - those areas that are under especially critical supervision by regulators.

Therefore, according to the study, a majority of respondents are planning a new IFRS project for next year and/or for the year-after-next that will compensate for the weaknesses of existing IFRS solutions. After all, 88 percent of the sample draws up their balance sheets according to the German Commercial Code as well as according to IFRS.

Prof. Dr. Lux was surprised: "We expected a certain degree of dissatisfaction, especially in terms of correct IFRS data preparation in the hedging and structured products areas, but this extent of dissatisfaction is truly remarkable. We are happy, though that the problems have been identified and that the controlling departments are working to remedy the situation."

Paul Rothenberger, Member of the Board of FERNBACH Software AG, continues: "The question of costs especially piqued our curiosity. As an IFRS solution provider, we gauge ourselves on the basis of solutions that can be implemented quickly as well as on our customers' cost-effective and efficient results. The study shows us that the respective costs for a number of IFRS projects were not properly taken into account.

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register for the webinarVisit http://info.nice.comvisit www.nextgenbanking.co.uk

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
9717 views comments | 14 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
9317 views 3 | 8 tweets | 1 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
8726 views comments | 13 tweets | 13 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
7232 views comments | 15 tweets | 26 linkedin

Featured job

Competitive
Germany, Austria or Switzerland

Find your next job